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Screening for Collusion: A Spatial Statistics Approach

Tinbergen Institute Discussion Paper No. 12-058/1

36 Pages Posted: 19 Jun 2012  

Pim Heijnen

University of Groningen

Marco A. Haan

University of Groningen

Adriaan R. Soetevent

University of Groningen; Tinbergen Institute

Date Written: June 15, 2012

Abstract

We develop a method to screen for local cartels. We first test whether there is statistical evidence of clustering of outlets that score high on some characteristic that is consistent with collusive behavior. If so, we determine in a second step the most suspicious regions where further antitrust investigation would be warranted. We apply our method to build a variance screen for the Dutch gasoline market.

Keywords: collusion, variance screen, spatial statistics, K-function

JEL Classification: C11, D40, L12, L41

Suggested Citation

Heijnen, Pim and Haan, Marco A. and Soetevent, Adriaan R., Screening for Collusion: A Spatial Statistics Approach (June 15, 2012). Tinbergen Institute Discussion Paper No. 12-058/1. Available at SSRN: https://ssrn.com/abstract=2086604 or http://dx.doi.org/10.2139/ssrn.2086604

Pim Heijnen (Contact Author)

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Marco A. Haan

University of Groningen ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 50 363 7327 (Phone)
+31 50 363 7227 (Fax)

Adriaan R. Soetevent

University of Groningen ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
++ 31 50 363 7018 (Phone)

HOME PAGE: http://www.soetevent.com

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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